45-611

45-611. Groundwater withdrawal fee; amounts and
purposes of fee; exception

A. Except as provided in subsection B of this section, the director shall levy and
collect an annual groundwater withdrawal fee from each person withdrawing groundwater in
the Prescott active management area or the person who owns the right to withdraw the
groundwater, in an amount not to exceed five dollars per acre-foot of groundwater
withdrawn and beneficially used. The director shall levy and collect an annual
withdrawal fee from each person withdrawing water, other than stored water, from a well
in the Santa Cruz active management area or the person who owns the right to withdraw the
water, in an amount not to exceed five dollars per acre-foot of water, other than stored
water, that is withdrawn and beneficially used. For purposes of this article, the annual
withdrawal fee levied and collected in the Santa Cruz active management area shall be
considered a groundwater withdrawal fee. The actual amount of the fee levied and
collected by the director pursuant to this subsection shall be set by the director as
follows:

1. For administration and enforcement of this chapter, an amount not less than
fifty cents and not greater than one dollar per acre-foot per year. The initial fee for
administration and enforcement shall be levied as soon as practicable after the active
management area is established.

2. For augmentation of the water supply of the active management area, conservation
assistance to water users within the active management area and monitoring and assessing
water availability within the active management area, an amount not greater than two
dollars per acre-foot per year.

3. For purchasing and retiring grandfathered rights, an amount not greater than two
dollars per acre-foot per year. The initial fee for purchasing and retiring grandfathered
rights shall be levied in the first year in which the director develops and implements a
program for the purchase and retirement of grandfathered rights as part of the management
plan for the active management area, but not earlier than January 1, 2006. The director
may not levy a fee under this paragraph on a district member of a groundwater
replenishment district that withdraws groundwater in the district for a non-irrigation
use in the district.

B. A person, other than an irrigation district, who withdraws groundwater in an
active management area from a non-exempt well for use pursuant to an irrigation
grandfathered right that is appurtenant to ten or fewer irrigation acres and the person
who owns the right to withdraw the groundwater are exempt from the groundwater withdrawal
fee requirements of subsections A and C of this section for those withdrawals unless the
irrigation acres are part of an integrated farming operation.

C. Except as provided in section 45-411.01, subsection C and subsection B of this
section, the director shall levy and collect an annual groundwater withdrawal fee from
each person who withdraws groundwater in the Tucson, Phoenix and Pinal active management
areas or the person who owns the right to withdraw the groundwater, in an amount of not
more than five dollars per acre-foot of groundwater withdrawn and beneficially used. The
director shall set the actual amount of the fee as follows:

1. In the Tucson and Phoenix active management areas, beginning in 2017, for
administration and enforcement of this chapter, an amount of at least fifty cents but not
more than one dollar per acre-foot per year. In the Pinal active management area,
beginning in 2017, for administration and enforcement of this chapter, an amount of not
more than one dollar per acre-foot per year.

2. Through 2016, for augmentation of the water supply of the active management
area, conservation assistance to water users within the active management area and
monitoring and assessing water availability within the active management area, an amount
of not more than fifty cents per acre-foot per year, and after 2016, an amount of not
more than two dollars per acre-foot per year. If a permanent board of directors of an
active management area water district assumes office under section 48-4831, the fee for
augmentation under this paragraph shall not be levied in that active management area.

3. In the Tucson and Phoenix active management areas, for Arizona water banking
purposes, the amount of two dollars fifty cents per acre-foot per year. In the Pinal
active management area, through 2016, for Arizona water banking purposes, including
replenishment under chapter 15, article 3 of this title, the amount of two dollars fifty
cents per acre-foot per year and, beginning in 2017, for Arizona water banking purposes,
including replenishment under chapter 15, article 3 of this title, an amount of not more
than two dollars fifty cents per acre-foot per year.

4. For purchasing and retiring grandfathered rights, an amount of not more than two
dollars per acre-foot per year. The initial fee for purchasing and retiring
grandfathered rights shall be levied in the first year in which the director develops and
implements a program for the purchase and retirement of grandfathered rights as part of
the management plan for the active management area, but not earlier than January 1, 2006.
The director may not levy a fee pursuant to this paragraph on a district member of a
groundwater replenishment district that withdraws groundwater in the district for
non-irrigation use in the district.